Supreme, a consumer goods distributor, has expanded its portfolio with the acquisition of Typhoo Tea for £10.2 million.
- The deal includes Typhoo Tea’s stock and trade debtors valued at £7.5 million, ensuring a seamless integration.
- Established in 1903, Typhoo Tea brings a rich history of pre-packaged tea and diverse product offerings.
- Supreme aims to leverage Typhoo’s brand to enhance its sales and innovation opportunities.
- This acquisition aligns with Supreme’s strategy to diversify its non-vape sales, aiming for substantial growth.
Supreme, based in Stretford, has announced its acquisition of the Typhoo Tea brand for £10.2 million, bolstering its portfolio in consumer goods. The transaction not only includes Typhoo Tea itself but also incorporates its stock and trade debtors, collectively valued at £7.5 million. This strategic acquisition is expected to be incorporated smoothly into Supreme’s operations without affecting current service levels.
Typhoo Tea, which was founded in 1903, gained fame as the first pre-packaged tea brand in the UK. Over the years, it has broadened its product range beyond traditional teas to include instant flavoured teas, herbal infusions, and a variety of coffees. Notably, it serves major UK supermarkets, the Ministry of Defence, the NHS, and has a presence in international markets such as North America, EMEA, and Southeast Asia.
Despite its storied past, Typhoo Tea has faced difficulties recently, reporting an unaudited revenue of around £20 million for the year ending September 2024, but also a pre-tax loss of £4.6 million. With the acquisition, Supreme seeks to rejuvenate the brand and use its market reach to foster growth and brand loyalty.
The acquisition is a strategic move for Supreme, which initially entered the market as a vaping supplier. It has since diversified into white label soft drinks, lighting, batteries, and sports nutrition, with Typhoo Tea adding another dimension to its offerings. Sandy Chadha, Supreme’s CEO, expressed confidence in the synergistic potential within Typhoo’s product portfolio alongside Supreme’s existing categories, anticipating new opportunities in sales and marketing.
Typhoo’s transition involved moving its operations from Wirral to a new headquarters in Bristol after the former site suffered severe damage from an occupation. This change marks a fresh start under new ownership with Supreme poised to integrate and reinvigorate the brand. Supreme aims to significantly increase its non-vape revenue, with projections of it comprising about half of the group’s overall sales.
The acquisition of Typhoo Tea by Supreme represents a significant milestone in their strategy to expand and diversify their business portfolio.
